Chinese Government provides RMB 50 million interest-free loan to Malawi for education, women's empowerment, and other development projects

📋 Staff Comments

1. This agreement was most likely an Economic and Technical Cooperation Agreement (ETCA) from China's Ministry of Commerce, which could have committed funds for multiple projects, therefore AidData has assigned this record to the umbrella category (as there is risk of double counting).
2. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.

📚 Sources & References

• China injects $25m in Malawi projects
• Vice Foreign Minister of The People’s Republic of China Visits Malawi, 14th to 16th October, 2014
• Vice Foreign Minister of the People's Republic of China visits Malawi, 14th to 16th October 2014 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.